Will Advertising Fail on the Internet?

Why Advertising Will Fail on the Internet
Eric Clemons

I think Clemons makes some good points in his article. I believe in his points that “consumers do not trust advertising. . . consumers do not want advertising. . .and. . .consumers do not need advertising.”

However, I think the solutions he offers aren’t necessarily much better than the occasional pop-up or sidebar ad that internet users have to deal with.

The first solution he offers is for websites to charge for content. While in some cases the use of “micropayments for purchases, like iTunes,” can serve as a business model, I don’t think the idea of charging for content would work in most cases. For example, I have a feeling that most consumers would rather deal with a sidebar ad next to an online article for a newspaper, than have to pay for ad-free content.

His second solution of charging for participation in an online community, while also revolutionary, also runs into fatal flaws. Again, I feel like most users would prefer free access to a social network, allowing them to easily connect with friends and business contacts, rather than have to pay for a service which has traditionally been free. Perhaps in the case of gaming, where a developer could charge for more server space than a social networking page, in may be viable. Just listen to the outcry for a possible Twitter charge in this video.

His third solution of selling accessories is one that I think more consumers would buy in to. This kind of goes along the lines of the “freemium” service idea. While Clemons seems to be making the argument that sites should be more focused on fully charging for content or access rather than earning money through advertising, I believe a better business plan is to offer a basic service for free, and charge for special add-ons that aren’t necessary for the primary function of the service. I can imagine a massive decline in the Facebook population if they began charging for outright membership. However, if they were to just charge for, say, the ability to use applications, the outcry wouldn’t be so severe.